Ardmore Shipping (NYSE:ASC) used its 2026 Investor Day to review fourth-quarter and full-year 2025 results while outlining the market dynamics and strategic priorities that management said are supporting tanker earnings and the company’s performance-focused operating model.
2025 results and early 2026 trading update
Chief Executive Officer Gernot Ruppelt said underlying market conditions remained “very favorable,” citing strong ton-mile demand, disruption-driven trade shifts, and what he described as a “very robust earnings environment.” He highlighted quarter-on-quarter TCE growth through 2025 and into the first quarter of 2026, with rates “edging towards levels three times our breakeven.”
Adjusted earnings were reported at $38.8 million, or $0.95 per share, for the full year 2025 and $11.6 million, or $0.28 per share, for the fourth quarter. The company declared a quarterly cash dividend of $0.09 per share, which management said aligns with its policy of paying out one-third of adjusted earnings.
Ruppelt emphasized continued cost discipline, stating the company achieved a cash breakeven of $11,700 per day, or $10,800 per day excluding CapEx. He also pointed to EBITDAR of $27 million for the quarter and $95 million for the year, describing EBITDAR as a useful comparable valuation metric against IFRS-reporting peers.
Market fundamentals: shifting trade routes, sanctions, and fleet aging
President Bart Kelleher said long-term product tanker demand is being supported by “dislocation of oil refineries,” with refining and petrochemical capacity shifting east while tightening supply in the West extends voyage lengths and boosts ton-miles. He added that long-term forecasts point to a greater focus on energy security and a slower energy transition, reinforcing expectations for sustained oil demand.
Kelleher also pointed to geopolitical disruption as a driver of route changes. As an example, he said the EU ban on Russian diesel has been accompanied by a ban on refined products derived from Russian crude oil, changing sourcing patterns and increasing voyage lengths. He cited an example where cargoes originating from Turkey are being replaced by U.S. cargoes, which he said represent more than a threefold increase in relative voyage length.
On supply, Kelleher argued that sanctions enforcement is tightening availability for “compliant” fleets. He said more than 16% of the global tanker fleet is subjected to sanctions and that enforcement is making it harder for those vessels to trade, with additional vessels joining the “dark fleet.” Taken together, he said roughly 30% of the global fleet is operating outside mainstream trades, tightening supply for compliant operators.
He also discussed what he characterized as a continuing trend of LR2 tankers exiting clean product trades and moving into crude, citing the interaction between LR2 ordering and a comparatively marginal Aframax order book. In addition, Kelleher revisited aging dynamics in the MR fleet, saying the fleet is “the oldest this century,” with an average age of almost 15 years, and that the portion approaching scrapping windows “dwarfs” the current MR order book. He added that utilization tends to decline materially as vessels age, benefiting younger, more employable tonnage.
Strategy and capital allocation: spot exposure, balance sheet actions, and fleet work
Ruppelt described Ardmore as a global owner and operator of product and chemical tankers with a focus on the overlap between refined products and more complex chemical cargoes. He stressed the importance of the company’s integrated trading platform, the flexibility of its MR and chemical fleet, and an emphasis on “performance and progress,” including efficiency initiatives and decision-making guided by corporate governance standards.
Management said Ardmore returned capital equivalent to 26% of its market cap since the end of 2022 and has paid its 13th quarterly cash dividend since reinstating dividends in the fourth quarter of 2022.
In 2025, the company completed a major drydocking cycle affecting nearly half of the fleet. Management said that results in limited dockings in 2026 and 2027 (about 10% of the fleet across those two years) and forecast fleet CapEx of approximately $5 million in 2026 compared with $30 million in 2025. The company also highlighted “near perfect on-hire availability” during the year.
In addition, management highlighted the purchase of three modern, fuel-efficient MR tankers in 2025, saying those vessels have appreciated 15% since acquisition. Ardmore also noted that while it remains predominantly a spot-market operator with 82% market exposure, it has added selective time charters to enhance earnings quality, including a recently fixed one-year time charter for a 2013-built MR at $26,000 per day.
On the balance sheet, management said Ardmore refinanced its bank debt into a $350 million fully revolving credit facility and fully redeemed its remaining $30 million of preferred shares, actions it said further reduced cash breakeven and supported financial flexibility.
Operational drivers: cargo flexibility and technology-led efficiency
Ardmore highlighted its commercial footprint across Houston, Ireland, and Singapore and argued that technical and commercial capabilities enable the fleet to compete across refined products and more complex chemicals.
Management provided voyage examples intended to illustrate trading flexibility and earnings capture in shifting routes. In one Atlantic Basin example, the company cited a vessel achieving a TCE of over $32,000 per day for 136 days. In another example tied to longer-haul Pacific movements and U.S. West Coast supply changes, management described a 60-day India-to-U.S. West Coast gasoline voyage and reported earnings of $32,000 per day over 117 days.
On fleet upgrades, Ardmore said it upgraded cargo tank coatings on all of its chemical tankers during scheduled dockings, expanding cargo versatility. Management said early returns exceeded expectations, citing recent voyages delivering TCE premiums of up to $6,000 per day along with operational benefits and fuel savings. It also described an example of a chemical tanker that remained laden for nearly a full year and achieved a TCE of $22,700 per day, which management said was comparable to MR earnings at the time despite the ship being smaller.
Technology and fuel efficiency were recurring themes. Management said fuel typically represents around two-thirds of voyage cost and outlined efforts including advanced hull coatings, sensors, proactive in-water hull cleanings, and AI-driven voyage optimization. The company said it is trialing autonomous hull-cleaning robots with “promising returns” in the 60%–70% range and stated that certain technology initiatives have delivered returns exceeding 100%.
Board commentary: geopolitics, AI investment risk, and liquidity
Independent director James Fok framed three macro themes the board is monitoring: geopolitics, technology shifts, and global liquidity. He said geopolitical risks rank at the top of the World Economic Forum’s risk survey and argued that supply chain shocks have pushed businesses away from “just in time” toward “just in case,” with more redundancy and inventory. He also said the environment may lead to reduced capital mobility and a de-emphasis of ESG goals as countries re-industrialize.
Fok said the total value of China’s trade has increased more than four times over the past two decades to $6.4 trillion last year, while the U.S. share declined from 15% to 9%. He said trade shares with ASEAN increased from 10% to 17% and the Global South from around 30% to around 40%.
On AI, Fok said the technology is transformative but warned of capital misallocation risk. He cited a Bain analysis suggesting a $20-per-month subscription model would require 8.33 billion active subscribers to justify the amount of investment flowing into AI—above the current global population cited on the slide. Management added that Ardmore’s approach is to be “really good at adopting AI” rather than developing it, emphasizing subscription-based tools that can be discontinued if returns fall short.
On liquidity, Fok cited forecasts for large U.S. Treasury issuance needs through 2030 and broader capital demands from reindustrialization, AI-related spending, infrastructure replacement, and the energy transition. He said the board and management are focused on maintaining adequate liquidity and diverse funding sources, including monitoring offshore renminbi bond markets for potential funding advantages.
During the Q&A, management said it views capital allocation as “non-binary,” balancing dividends, fleet actions, and performance investments while remaining patient for opportunities. Ruppelt said the company is satisfied with its current fleet but continues to look for “pockets of value” across sources of tonnage and reiterated that Ardmore has not participated in the newbuilding market since 2013, historically favoring the secondhand market.
Asked about geopolitics including Venezuela and Iran, management avoided offering political predictions but said shifting trade routes, pricing, and arbitrage tend to increase volatility and can support tanker demand. On the potential end of the Russia-Ukraine war, Ruppelt said the market would change, but he questioned whether trade would revert to the prior status quo, citing new routes and relationships that have developed.
About Ardmore Shipping (NYSE:ASC)
Ardmore Shipping Corporation is a Bermuda-based provider of seaborne transportation services for refined petroleum products. The company owns and operates a modern fleet of product tankers, including medium-range (MR), long-range 2 (LR2) and Aframax vessels. Ardmore Shipping focuses on the ocean carriage of clean and dirty petroleum products under time charters, bareboat charters and spot voyages, serving a diverse customer base that includes major oil companies and trading houses.
Since its founding in 2005, Ardmore Shipping has grown its fleet through newbuilding contracts, second-hand acquisitions and fleet renewals, aiming to maintain a high quality, fuel-efficient profile.
